In this paper, we determine the optimal exercise strategy for corporate warrants if investors suffer from imperfect information and we evaluate the impact of this friction on the value of a warrant. For this purpose, we address both exercises at maturity, where imperfect information about the firm value is present, and exercises before maturity which are impacted by imperfect information about ...

We can do everything. T What IS can do toady is highly limited. What we cannot do is Useless. R Useless confused with Cannot Be Done. So... why to worry about Uncertainty? U No future without using Uncertainty. T The Information Systems Radical. H The Uncertainty Zealot. Summary: This report surveys various forms of imperfect data, be it imprecision or uncertainty. To that end, a structured the...

We present a polynomial-time reduction from parity games with imperfect information to safety games with imperfect information. Similar reductions for games with perfect information typically increase the game size exponentially. Our construction avoids such a blow-up by using imperfect information to realise succinct counters which cover a range exponentially larger than their size. In particu...

The theme of this paper is integration of information arising from observations of spatial entities and relationships. The assumption is that observations are imperfect; in particular, that they are imprecise and inaccurate. Each observation is made in a context that among other things provides a level of resolution. So, a treatment of integration of observations of this type must take account ...

The analysis explores Bayes-rational sequential decision making in a game with pure information externalities, where each decision maker observes only her predecessor’s binary action. Under perfect information the martingale property of the stochastic learning process is used to establish convergence of beliefs and actions. Under imperfect information, in contrast, beliefs and actions cycle for...

The modern world is complex and difficult to understand for voters, who may hold beliefs that are at variance with reality. Politicians face incentives to pander to voters’ beliefs to get reelected. We analyze the welfare effects of this pandering and show that it comes along with both costs and benefits. Moreover, we explore optimal constitutional design in the presence of imperfect informatio...

Quantified CTL (QCTL) is a well-studied temporal logic that extends CTL with quantification over atomic propositions. It has recently come to the fore as a powerful intermediary framework to study logics for strategic reasoning. We extend it to include imperfect information by parameterising quantifiers with an observation that defines how well they observe the model, thus constraining their be...

Biased Beliefs and Imperfect Information We perform an incentivized experiment designed to assess the accuracy of beliefs about characteristics and decisions. Subjects are asked to declare some specific choices and characteristics with different levels of observability from an external point of view, and typically formed through real world experiences. From the less observable mobile phone purc...

We present a polynomial-time reduction from parity games with imperfect information to safety games with imperfect information. Similar reductions for games with perfect information typically increase the game size exponentially. Our construction avoids such a blow-up by using imperfect information to realise succinct counters which cover a range exponentially larger than their size. In particu...